PMC Bank despositors' woes mount as RBI Governor abroad

Mumbai, Oct 22 (IANS): The aggrieved depositors of the scam-hit Punjab & Maharashtra Cooperative Bank Ltd found no solution at a meeting with Reserve Bank of India (RBI) officials as the apex bank Governor Shaktikanta Das is currently touring abroad, representatives said here on Tuesday.

A delegation of the protesting depositors, which was called by the RBI for a meeting, was reportedly assured of various options to revive the bank "as soon as possible".

"However, RBI officials informed the delegation that it was waiting for an internal inquiry report of the PMC Bank which is expected to be submitted by the weekend. That report will be discussed with the Governor who is likely to return this week before any final decision is taken," the PMC Bank Depositors' Association convenor Vishwas Utagi told IANS.

Though RBI officials said they would be making a media announcement in the matter soon, the agitating depositors served an ultimatum till Oct. 30 to the RBI after which they would intensify their agitation, Utagi said.

Simultaneously pursuing the legal angles, Utagi filed a public interest litigation and a writ petition on behalf of a school in the Bombay High Court today.

In another development, a 73-year-old woman, Bharati Sadrangani, the mother of a depositor living in Solapur, died on Sunday after her daughter reported saving of around Rs 2.25 crore stuck in the PMC Bank.

Her Mulund-based son-in-law Chandan informed the media that she had been anxiously calling her family in Mumbai regularly enquiring about the status of the money and had collapsed after suffering a heart attack.

This becomes the sixth PMC Bank-related death in the past 10 days, all victims from Mumbai, and many more depositors, especially senior citizens, are under great stress as the crisis continues to drag on, Utagi pointed out.

Meanwhile, scores of PMC Bank depositors held another noisy protest in Mumbai today and have vowed to continue their demonstrations until the RBI or the government takes concrete measures to resolve the crisis on priority.


Comment on this article

  • SmR, Karkala

    Tue, Oct 22 2019

    Nearly a month after the RBI clamped down on the operations of scam-hit PMC Bank, the depositors say their woes have only worsened, with some unable to pay school fees of their wards, while others finding it difficult to meet medical expenses.
    Many fear that they might lose their lifetime earnings deposited in savings accounts, or in the form of fixed deposits.
    Murlidhar Dhara, a resident of northeast Mumbai. Unable to withdraw money for his treatment, a senior depositor with the PMC Bank died on Friday. This is the 4th life the PMC Bank Scam has taken

    Presently, the RBI has permitted depositors to withdraw a maximum of Rs 40,000 from the PMC Bank on which it has imposed wide-ranging sanctions for six months starting September.
    In June 2017, the PM Modi's BJP government approved the FRDI Bill which is intended to frame new rules for banks that are failing. It has created panic among savings account holders.
    *Under Section 52 of the FRDI Bill, the rescue body can cancel even the Rs 1 lakh insurance that you get under the current law. In this case, a bank can even declare that they don't owe you any money at all.
    *The same Section provides an option to the rescue body to modify a bank's liability. For example, if you deposit a certain amount of money for a certain period of time as savings (say 5-10 years), the bank can keep the money in a locked-in FD and change the time period without consulting you.
    *According to the bill, the bank may be exempted from fulfilling its promises to depositors in extreme cases. This means you lose all your money.
    *This can happen in case of an economic downturn when banks ask for a bail-in option.
    *The bank may turn your savings into a fixed deposit without asking you and that too at a lower interest rate and you cannot even challenge it, unless, you challenge the law.
    This is the first time that a Bill of this sort has been proposed in India. PMC bank RBI restrictions on withdrawals are a concern for every citizen of India.

    DisAgree Agree [2] Reply Report Abuse

  • JWL, KSA, M'lore

    Tue, Oct 22 2019

    Dear PMC Customers or Farmers or Unemployed or Traders or small Business people or Job looser's let our PM, President, RBI Governor or for that matter whole of Cabinet tour and enjoy. Why guys are crying after giving Vote's them again again!!!!!!

    DisAgree [1] Agree [18] Reply Report Abuse

  • Jossey Saldanha, Atlanta

    Tue, Oct 22 2019

    I wonder who's paying for all these Useless Foreign Tours ...

    DisAgree [1] Agree [17] Reply Report Abuse


Title : PMC Bank despositors' woes mount as RBI Governor abroad


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